LAHORE, Dec 18: Speakers at a workshop on “Effects of WTO on Pakistan’s leather industry” here on Wednesday opined that World Trade Organization posed no serious threat to this major foreign exchange earning sector.

However, they said the industry needed to address the whole value chain of its production to meet the required standards of quality set by WTO.

The workshop, jointly organized by Small and Medium Enterprise Development Authority (Smeda) and Pakistan Tanners Association (PTA), was also addressed by Hashim Raza, general manager, Management Development Group and Atif Saleem Malik, general manager, sector analysis and strategy department of Smeda.

Mr Malik while making a detailed presentation on “the impacts of WTO on leather industry”, said implementation on the WTO rules had made a radical change in the world economy.

The total world exports, which were only 14 per cent of the global GDP in 1970, have grown up to 25 per cent today, he said, adding that annual global FDI flows surged to a record level of $400 billion in 1997, directing 37 per cent investment towards the least developed countries in 1990. Similarly, the daily foreign exchange transactions averaged to $20 billion in 1970 have jumped up to $1.5 trillion, he said.

Saleem Malik said the developed countries had taken the timely measures to transform the WTO rules into the ultimate economic benefits. They attained this goal by joining regional trade blocks like European Union, NAFTA and ASEAN, Mr Malik added. He disclosed that these blocks had confined 50-70 per cent of their exports within their blocks. That is why, the least developed countries representing 20 per cent of the world population are generating only 0.03 per cent of the global trade flows despite a considerable increase in the total volume of the world trade, he lamented.

Referring to the world leather sector, Smeda expert said world market was doing over $44 billion business in this field.—APP